Ford Drives Alone on Price

Ford Drives Alone on Price

Article excerpt

Ford drives alone on price

Vauxhall and Rover are holding back on planned UK price rises in a move that leaves their arch-rival Ford isolated in the crucial August sales period.

Ford, the established price leader in the UK car industry, has announced that its increases will take effect from Monday--right in the middle of the traditional annual sales boom. But its two competitors are retaining existing pricing until late September.

Ford is already losing market share and the move by Vauxhall and Rover is likely to erode its position still further. Company fleet buyers, who make up the majority of Ford's customers and who are understood to be angered by the manufacturer's action, could now start turning elsewhere.

Several are saying that they will look more closely at other manufacturers' offerings including those from Japan.

Says a Rover spokesman: "Ford's price hike will definitely give us a competitive edge, but that is not why we are waiting.

"It would be unreasonable to our customers to apply increased prices at the moment. I can only assume that, in this respect, we are much more customer-oriented. …